FOR IMMEDIATE RELEASE 98-59
EDGAR MODERNIZATION CONTRACT AWARDED
Washington, D.C., June 30, 1998 -- Today the Securities
and Exchange Commission (SEC) announced that it has awarded
to BDM International, Inc. (BDM), a wholly owned subsidiary
of TRW Inc., a three year contract for the modernization of
the EDGAR system. The contract will be effective on July 1,
1998. The estimated three year cost of modernization is
$22.4 million. The total award amount for both the
modernization and ongoing operation of the system through
June 2001 will be approximately $49 million.
EDGAR modernization will improve substantially the
presentation quality and structure of SEC filings. The
EDGAR architecture will be converted to an internet-based
system using HTML as the official filing format, and will
also support the attachment of graphical files such as PDF.
Filers will realize reduced costs and effort associated with
the preparation and submission of SEC required documents.
The new dissemination system will reduce dramatically
the annual subscription cost for the entire, real-time
database of filings. The rate for each of the current nine
subscribers will be reduced from the present cost of
$278,000 to $79,686. If the number of subscribers increases
to 16, the subscription rate for each subscriber will be
reduced to $47,439.
At the end of the three-year modernization contract,
the SEC has the option of a full recompetition or may extend
the contract with BDM for up to five years, in one year
increments. If all five extensions are exercised, the total
eight year cost for this contract would be approximately
$102 million.
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